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Collaborative Agent Based Supply Chain Planning for Functional Product Markets  

Jung, Ho-Sang (Grado Department of Industrial and Systems Engineering, Virginia Tech, Blacksburg)
Jeong, Bong-Ju (Department of Information and Industrial Engineering, Yonsei University)
Lee, Chi-Guhn (Department of Mechanical and Industrial Engineering, University of Toronto)
Publication Information
IE interfaces / v.19, no.1, 2006 , pp. 53-61 More about this Journal
Abstract
We propose a new supply chain planning methodology for both a manufacturer and a distributor in order to find a global supply chain plan for functional product markets. Functional products as opposed to innovative products include the staples that people buy regularly from their nearby places to satisfy basic needs. In the functional product market, the distributor has an initiative of supply chain control and planning with a freedom to request any profit maximizing order quantities until the manufacturer refuses, whereas the manufacturer may not provide more than requested. In this paper, two independent agents on behalf of the manufacturer and the distributor are introduced, and supply chain planning can be conducted by collaboration between them. In addition, mathematical models and a numerical example are presented to show the possibility of the proposed methodology.
Keywords
supply chain planning; collaborative agents; functional product markets; supply chain management;
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